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Published Friday, May. 31, 2019, 9:11 am

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Credit: SashkinAs with any other innovation, online gambling had its fair share of ups and downs. More so, given society’s general attitude towards gambling. The technological development that hit the world in the last 30 years took every aspect of quotidian life in a whirlwind of change where there were only two choices: adapt or perish. Then there were few who managed to recognize business opportunity and lunge ahead regardless of the risks. These pioneers of online gambling managed to take this industry towards the high-profit margins it makes today and to a competitiveness point where free online slots with bonus rounds are required to get noticed, but not enough to get ahead.

Although browsing through the whole history of gambling might be a tedious assignment, there are a couple of pointers in the past that show us how it all developed, could clarify at which point we find ourselves today and maybe give a small glimpse of what there is to come for this particular domain.

The Past

You might find it hard to believe, but the innovators that first saw the benefits of online gambling come from some of the most interesting and unexpected places on Earth:

In Antigua and Barbuda was registered the first law in the world, that gave the right to emit licenses for online gambling, thus giving birth to the industry
Kahnawake Indian tribe in Canada issued the first gaming licenses
Microgaming’s GamingClub raced InterCasino to become the first virtual platform for online gambling. Microgaming still remains one of the top online casinos’ software providers to this day

The sites managed to spread like wildfire growing to 15 in the first year, to 200 in the second year and this was still before the third millennium. Shortly after, live sports betting occurred and then the star of the online gambling expansion, virtual poker games. PokerStars is the name to hold accountable for the massive expanse worldwide of online poker as well as the growing renown of Texas Hold’em, as a poker style of play.

This uncontrolled expansion, with a market quoted at over 5 billion USD revenue per year, couldn’t have gone unnoticed and in 2006, the US passed the Unlawful Internet Gambling Enforcement Act. This was a clever move on behalf of regulators as they didn’t make online gambling illegal, but money transfers with connections in the wagering domain. It created enough confusion to make most websites think twice before going through all the commotion, and they simply disallowed access to all US citizens to their sites. But this meant cutting back a large portion of their customers, so it made them turn towards other unexplored markets, making the phenomenon truly global.

The Present

Nowadays, Europe has already regulated a set of laws making online gambling a right to choose, for every citizen. The US Supreme Court clearly stated in 2018 that it’s not a federal crime to gamble online, but every state’s right to decide upon its own laws on the matter. And then providers like best RTG casino software provider raised and many off-shore online casinos started to allow US gamblers.

Fact is that the industry kept on growing regardless of the opposition and it holds revenues close to 1 trillion USD. A major contribution had the development of ways to access these websites via mobile phone. The year 2018 saw more than 150 million people using these devices to play casino games. And with regulations going towards an easement in restrictions, surely the numbers are going to grow exponentially.

The Future

Besides being a booming industry that is going to continue its impressive growth over the years, it’s also a domain with high sensitivity to technological advancements, as well as fashion trends and people’s expectations.

The graphic elements and animations are more lifelike, recreating with high accuracy the atmosphere from a real-life casino. Also, the latest trend sets the whole action in a virtual reality game, making the player much more involved in the experience.

1. The Wide Area Progressive (WAP) Slot Machines Are Some of the Worst Bets in the Casino

A progressive slot machine is one with an electronic ticker at the top which displays an ever-increasing jackpot amount. You’ll find 3 kinds of progressives:

Single machines
Local area progressives
Wide area progressives

What all these games have in common is that they “fuel” the progressive jackpot by taking a percentage of each bet and applying it to the jackpot. In the case of single machines, the jackpot only grows when you’re playing that specific machine.

Local area progressives are machines within a specific casino which tie into the same jackpot. Any bets placed at any of these machines grow the jackpot amount.

Wide area progressives are machines within a certain geographic radius. In Las Vegas, the most famous wide area progressive slots are the Megabucks machines. Literally, thousands of slot machines power these jackpots, and they’re correspondingly huge – at least $10 million.

The problem with slot machines with jackpots this large is that their payback percentage is inferior to the payback percentage on a flat top machine. (A flat top machine has a fixed jackpot amount.)

A typical Vegas slot machine has a payback percentage of at least 90%. A wide area progressive has a payback percentage of 80% or less when you discount the effect of the progressive jackpot. Since you only have a 1 in 15 million chance of winning the top jackpot, it’s sensible to deduce that amount from the overall payback percentage for the machine.

2. Payback Percentage Is How You Measure the Odds for Gambling Machines

You might have heard of the house edge. That’s a term used to describe how good or bad the odds are for table games. It’s a mathematical prediction of how much you’ll lose per bet on average over a tremendous number of trials.

The house edge is expressed as a percentage. If a game has a house edge of 1%, the casino expects to win $1 every time you bet $100, over the long run. In the short-term, anything can happen. What most gamblers don’t realize is that they long run is longer than they think.

The payback percentage is the flip side of the house edge. It’s the amount of money the casino expects the player to win back for every bet. It’s also expressed as a percentage. For example, if I tell you a game has a 99% payback percentage, the casino expects you to win 99 cents every time you wager a dollar – again, on average, over time.

You can use house edge and payback percentage to compare the odds for different games.

3. Video Poker Machines Have Transparent Payback Percentages that Are Superior to Slot Machines

The higher the payback percentage, the better. The problem with slot machines is that they’re the only game in the casino where you can’t know what the payback percentage is. In fact, the payback percentage for slots is usually the lowest in the casino.

That’s one of the major differences between slots and video poker, in fact. On a video poker game, the probability of getting a result is something you can calculate. The random number generator on a video poker game emulates the same odds as a standard deck of 52 cards.

You need 2 pieces of data to calculate the payback percentage for a gambling machine:

The prize amounts
The probability of winning those prizes

Unless you’re Rain Man, you can’t just look at a video poker pay table and know the payback percentage.

But computer programmers and gambling writers have analyzed almost every video poker pay table you can imagine and published the results online.

A quick search of Google can help you compare video poker machines to find the ones with the best odds.

Also, even the video poker games with the worst odds are usually better than slot machines.

4. Drinks Are Free in the Casino

This isn’t true in every jurisdiction, but in most major casino destinations, drinks are free – but only if you’re gambling. (Last time I was at the Winstar, they were charging for alcohol, even if you were playing.)

You still need to tip your cocktail waitress, though. A buck or two is sufficient.

But just because the drinks are free doesn’t mean you should over-indulge.

Casinos offer free drinks because alcohol impairs your judgment. You’ll gamble over your bankroll and lose more money than you intend to if you drink too much.

Don’t be that guy who thinks he’s more macho than the other drinkers in the casino, either. He’s the guy who loses the most money, regardless of what he claims.

No one likes that guy.

Also, a word to the wise:

If you can’t control your drinking, you probably can’t control your gambling, either. You might be better off avoiding casinos altogether.

5. Table Games Offer Better Games than Gambling Machines – With One Exception

The rule of thumb for gambling at a casino is that the easier the game is to understand, the worse the odds are.

It’s easy to understand a slot machine. You put your money in, spin the reels, and hope that winning symbols line up.

Blackjack, on the other hand, is harder to understand. You have to learn the values of the cards. You have to know what your options are when playing each – hit, stand, double down, split, etc. And it helps to know what the right move is in each situation.

But look at the difference in house edge.

The house edge for most slot machine games is at least 7%. Even if you’re terrible at blackjack, the house edge isn’t more than 4% or so. If you spend a little time learning basic strategy, you can but the house edge to blackjack down to 1% or less.

Even the table games with no skill required, like baccarat, craps, and roulette, offer a lower payback percentage than most slot machine games.

There’s one exception, though – video poker machines.

Good video poker machines combine the thrill of playing a gambling machine with the low house edge of a table game.

Much of this is because video poker games are based on card games. The random number generator duplicates the odds you’d see if you were dealing hands from a 52-card deck.

Slot machine payback percentages usually range between 75% and 93%. The outliers might top out at 97% or 98%.

Video poker payback percentages range from 92% up to 100.1%. Those numbers assume that you play with a reasonably correct strategy most of the time.

6. Betting Systems Don’t Work

It won’t take long at the casino before you meet someone who’s a proponent of the Martingale or some other betting system. It’s tempting to think that a betting strategy like this might work, but it doesn’t – at least not in the long run.

Here’s how the Martingale System works:

You start by defining a single betting unit and choosing an even-money bet. The most common game people try the Martingale on is roulette, which has several even-money bets that seem to have a close-to-50% chance of winning.

You then start by betting a single unit. If you lose, you double your bet, hoping to recoup the previously lost bet along with a single unit profit. You repeat this doubling of your bets every time you lose.

Here’s an example:

You bet $10 (one unit) on red. The ball lands on black, so you lose your $10. The system says you double your bet, so now you bet $20 on red. The ball lands on black again, so you lose $20. The system says you double your bet again, so now you bet $40. This time, the ball lands on red, so you win back the $30 you lost on the previous bets. And you’re ahead by $10.

This can work well in the short run, but people have a few misunderstandings about the viability of such a system.

The first is the assumption that long losing streaks are terribly unlikely. The truth is, losing several times in a row is a lot more likely that you probably think.

The second is the lack of understanding of how fast doubling your bets makes you put money into action. $10 is no big deal, and neither is $20. Heck, even $40 isn’t that much for most people.

But if you lose 4 or 5 times in a row, you’re betting hundreds of dollars per spin.

It doesn’t take long for you to get to a point where the next bet in the progression is beyond your bankroll or beyond the betting limits at the table.

All the Martingale System does, in the long run, is get you some small wins here and there, all of which will eventually be wiped out by a huge losing streak.

The house edge for a casino game remains unaffected by your betting system.

7. Casinos Offer Classes in How to Play Their Games

Some people who are new to the casino adventure are intimidated by table games – especially craps. That’s too bad because these games offer better odds than the slot machines. They’re easy to learn, too. And I think they’re more fun.

But you don’t have to try to puzzle out how to play blackjack, craps, or roulette from tutorials on websites like this one. You don’t even have to buy a book or an instructional video about how to play.

Almost all casinos offer classes on how their games work. To find out when these games are scheduled, just ask anyone in customer service at the casino. If the specific individual can’t tell you what the schedule is like for these free classes, they can point you in the direction of someone who can.

These classes are usually held in the mid-morning. They’re usually followed by actual game-play, but that’s optional.

I learned to play blackjack from my mom at the kitchen table. Roulette was so easy I just sat down at the table and got the hand of it.

But I learned to play craps at a class at the Planet Hollywood Casino in Las Vegas.

You can also learn to play these games using free games at Internet casinos, but I think you’ll enjoy the free classes at the casino.

One caveat, though:

Take strategy advice from casino dealers with a grain of salt. For example, they love to explain hedging your bets in craps at these classes. That’s a lousy strategy.

8. Almost Everyone Working in or Near the Casino Industry Rely on Tips to Make a Living

You don’t have to dole out all your money to everyone working at a casino. But it sometimes feels like it. If you want to be a good person with a little bit of class, remember to tip a reasonable amount for various services.

If you eat at a buffet restaurant, a dollar or 2 for each person is a reasonable tip. Your waitress is only refilling your drinks, not providing full table service, so that doesn’t warrant a 20% tip.

Real sit-down restaurants work the same way in Vegas as anywhere else. You should tip a minimum of 20% in a casino destination. If you’re happy with the service, consider 25% or 30%, instead.

Casino game dealers deserve tips, too. It’s customary to throw them an occasional tip after a win. If you want to look sophisticated, place a bet on behalf of the dealer. This is especially common at the blackjack table.

A good rule of thumb is to plan on using 5% to 10% of your starting bankroll for tips to the dealer. It’s up to you to decide when to tip. Some players tip when they’re ready to leave the table, while others tip during the game. I think it’s more fun to tip while you’re playing.

Cocktail waitresses deserve at least a dollar for bringing you a drink. I’ll often tip more than this early in the evening to make sure I’m not ignored throughout the night, though. If you’re planning to spend several hours drinking in the casino, consider giving the cocktail waitress $10 or $20 for the first drink she brings you.

You can scale back after that but occasionally provide a larger tip to keep her coming around.

It’s also customary to tip bell hops, taxi drivers, and the hosts who seat you at the various shows. Tipping the host at a show can get you a better seat. You can even tip the person at the check-in desk in hopes of getting a room upgrade. It’s customary to include a $20 or $50 with your credit card when you check in. Don’t be shy. Ask if they have any upgraded rooms available at the same price as your room.

Past Casino Online Visits Websites

If you get a reputation as stingy with your tips, you won’t have as much fun at the casino. No one likes that guy.

9. Casinos Have Their Own Rules of Etiquette

You’ll pick up on the most common rules of etiquette in the casino eventually. But a little knowledge in advance can help you be less of a bore.

I’ve already covered tipping, but there are other unwritten rules you should know about.

The most important rules of etiquette, at least from the perspective of the casino’s staff, relate to the handling of cash. You never hand a dealer money. You put your cash on the table, and the dealer exchanges it for tips.

Past Casino Online Visits Site

This is for security purposes, but it also protects the dealer from accusations. By putting the money on the table, you make the entire transaction visible to the cameras above the casino floor. (These are called “the eye in the sky”.)

Kenny Rogers is right, too – never count your money at the table. It’s crass. It’s also dangerous because casinos attract pickpockets and thieves just like any other den of iniquity.

Past Casino Online Visits Sites

Specific games have specific rules of etiquette, too. For example, in a single deck blackjack, it’s customary to pick up your cards. But in a game dealt from a shoe, you should never touch your cards.

10. You Should Budget More Money for Your Trip than You Think

The biggest mistake I made the first time I went to Vegas was underestimating how much money it would cost. After all, Vegas is famous for cheap meals and free (or close-to-free) entertainment.

The thing is, all these cheap and free experiences are come-ons to get you gambling. And gambling is always more expensive than most first-time gamblers expect it to be.

I recommend having multiple budgets for your trip, too. Your gambling funds, especially, should be entirely separate from all your other expenses.

I have a friend who went to Vegas and gambled almost all his money away the first day. He barely had anything to eat for the rest of the trip, and he spent most of the rest of his trip watching television in his hotel room. He had enough sense to set aside money to get himself back to the airport.

I can’t imagine a more disappointing end to a trip to Vegas, though.

You should have a budget for meals, a budget for entertainment, and a budget for getting to and from the things you want to do while you’re there. Your gambling budget should be separate from all that.

I suggest drawing up a budget for each of those, based on what you’ve learned about prices there from Frommer’s or from travel guides on the Internet.

Then add 20% to each line item in the budget.

You’ll be better off having too much money for your trip than too little.

Past Casino Online Visits Games

Conclusion

Casinos are a lot of fun, especially if you’re visiting for your first time.

But gambling and casino entertainment can also be intimidating for the beginner. They don’t have to be, though. With a little bit of education and some planning, you can have a successful first trip to the casino.

If you’re like most people, your first trip to the casino probably won’t be your last.